00:00:00 Hey guys, it's Temple from Extreme Ag. I got Charlie Liger here. He is one of our extreme Ag members, 00:00:04 and I got Alexander from CMF Ag, uh, my son. So today we're actually gonna have a discussion about like, we're out here in the, we in, in a field that normally 00:00:13 for us, this is after your corn. What would this be in? It would be a Wheat crop. It'd 00:00:17 Be a wheat crop. And this year it's you and I, neither one of us planted wheat this year. So I mean, what, why did we not do that? 00:00:26 Well, it was easy. I mean, market, it was a market driver, you know what I mean? The market, we're already dealing with a negative basis, 00:00:32 you know, with dollar basis at the time of plant time. So it's hard to justify when you're talking $5, $5 a week potential for the spring. 00:00:41 I just can't see where the input costs the way they are today. I just, it just doesn't pencil out, you know? 00:00:46 It's just, I, I hate the, the fact that we miss rotation, but yeah, if you're gonna lose money in a, 00:00:52 in a spring crop, I just can't. I just can't see for cash flow and you're gonna lose on the negative side that much money. 00:00:57 You know, here we are talking about fertility and all the costs involved. Yeah. So we just went over some numbers, Alexander, 00:01:03 we went over them numbers and how bad were them numbers and when we talk about it, about today's price, you know, but yeah, 00:01:09 Five, what? Five 15 with a negative 85 basis. So that's what we base the numbers off today. And what was our, what was our dude? 00:01:16 It was bad. I mean, this today was bad. Like it was bad. Like when at five 50 when I, when you 00:01:22 and I were doing the, the math in the fall. Fall, yes. You know what I mean? We knew that we had to be like somewhere 00:01:27 around like 87 bushel acre today we come up with, with 117 bushels just to break even with today's cost something. 00:01:34 Well, today we went a little bit overboard. We started weigh it in our, you know, everything, our equipment costs, freight, the 00:01:40 Freight rental, everything. That would really be off everything True. We were like, yeah, 00:01:43 so thank God we did something different. So what we did this year was we went ahead and put in a cover crop instead. 00:01:50 So now we need to start thinking about like, what are we gonna do for, for, for this year? Like we're used to having double crop beans. 00:01:57 Now our inputs are gonna be different 'cause our double crop beans, we just go out there and plant them naked. 00:02:01 Now we got a whole nother thing that we gotta deal with. So we need to figure out a, we're, are we going 00:02:06 to swing more of this? Or, or wheat acres, double crop acres. We swinging this in the corn 00:02:11 or we're gonna swing it into beans and what the input costs. Like we don't even know what input costs. 00:02:16 Alexander made a great point when we were on our way over here to talk today and what'd you talk about? The tariffs? 00:02:22 Yeah, I mean tariffs, it's, it's just as volatile and just as bad on here. Inputs as it is the exports too, you know, 00:02:28 so it can change just So we don't know. Even that's True. So You might, what's are even gonna be right now lock true. 00:02:33 You make be trigger both ways. We have locked in some prices, you know, as far as on fertility and all, but it's volatile like crazy. 00:02:41 So is that what's gonna happen? And we can swing this thing one way or the other. We don't know where this thing's gonna go. 00:02:46 So how do you prepare? How do you prepare for that? Is it a, is it a game day decision right to the day of plant day? You know, how can you, 00:02:56 Unfortunately it seems like this is where it's going to, you know, I talked to my broker today about, you know, some 00:03:01 of these prices and stuff, you know, what we went through with wheat, not knowing what to do. 00:03:05 Like I don't wanna end up in another situation with corn, you know, in soybeans. 00:03:09 Like what, what are we, what are we gonna do? We have a marketing plan and we've marketed a bunch of it, but he was like, honestly to tell you the honest bad truth, 00:03:17 pull all your money out of, you know, all your other stuff, options, hedges, all that stuff. 00:03:23 Take all, take it all out because it flip a coin, you're gonna be right 50% of the time. Exactly what my broker told me 00:03:29 because it's not playing on fundamentals. We got lucky. So back to the wheat crowd, you and I didn't plant wheat, 00:03:34 you would usually come out here like we'd be out here. I'd be excited when the melt, when the melt of this comes off because we get a little 00:03:40 green energy now. Green, Yeah. Yeah. We'd be greened up. We'd be getting ready to start top dressing honestly. 00:03:45 Thank God we don't have to worry about that. We've got a cover crop in there. We got incentivized because for you and I 00:03:51 and Alexander on our farms, we look back at why did we not do it? Because we can actually gain more money 00:03:58 by putting in a cover crop, get something, you know, make our soil better obviously, and we're getting an incentive out of it. 00:04:06 So our incentive, we're on the upside of 40, $50. So let's just say it was a hundred bushel break even on wheat. 00:04:13 So that means that we would have to average 110 bushel at least to cover what we could make on just the wheat, not including the wear 00:04:21 and tear on the combine. Freight trucks run up and down the road. Um, planters out there planting the, that like I all around, 00:04:28 it was a better option for us. And I hate to say it was the first year for us. I mean we usually planted it. 00:04:33 We're heavy weed acres usually this first time we've never done this. And it, its Actually scares between, I mean, normally we're somewhere 00:04:40 between four and 800 acres Of, and we're somewhere between then thousand and 1700 acres. It's a 00:04:46 Big swing for me. Like holy crap. You know what I mean? Like, I don't know, I don't, I'm not sure even today how this all pans out to get to next fall. 00:04:54 Well you know what word? 'cause you're not, you're not used to that 'cause you've done it 00:04:57 Well. You're also used to being like, oh well you know, I'm gonna scratch by this spring and get my bills paid up. And then I got that money coming in for wheat. 00:05:05 That's what I always thought. Yeah. Yeah. Not This year. Not this year. This year you ain't got it. But it's money not spent. 00:05:12 So yeah, that's how we came up with our plan this year, whether it was the right plan or not. But hopefully the wheat market will 00:05:17 come around for everybody else. But right now, me, Charlie, and Alexander, we ain't playing in the wheat market. 157 00:05:23.035 --> 00:05:23.325